Government’s goal of achieving 5,000 megawatts of installed electricity generation capacity by 2016 has received a shot in the arm with the International Finance Corporation (IFC) of the World Bank Group agreeing to partner the Volta River Authority (VRA) in developing and financing power projects.
A memorandum of understanding to that effect has been signed between the IFC and the VRA, under which identified projects will be developed in partnership with private sector power developers.
“As part of the MOU we will help the VRA to identify the projects they want to embark on, help them with the feasibility study work, help them to partner with companies that have the expertise and then we will help to structure the financing arrangement that would be needed to get those projects built,” Richard Arkutu, IFC Manager, Africa Special Initiative for Infrastructure, told the B&FT.
Feasibility is already ongoing on one of such projects at Domunli in the Jomoro area of the Western Region – a 450-megwatt combine-cycle thermal plant to be built at an estimated cost of over US$500milliom.
Richard Arkutu said for Ghana to consolidate its middle-income status, it would have to embark on massive infrastructure development projects including power generation, a reason the IFC is supporting the power sector.
“IFC is committed to supporting the goals of the Ghana National Energy Policy to increase installed generation capacity over the next few years to meet the growing energy needs of Ghanaians,” he said.
“By partnering with the By Basiru ADAM, we are able to identify the correct entry points for the private sector to have an impact on the country’s development goals in the electricity sector.”
The IFC has a total investment of US$385million in the country’s energy sector so far, made up of US$265million support to Kosmos Energy and Tullow Oil on the jubilee project as well as US$120million for the expansion of the TICO power plant in Takoradi.
Kirk Koffie, CEO of the VRA, said the MOU is a major boost to the power generator’s efforts at increasing generation capacity in the country, which is growing by 200 megawatts per year.
Asked whether 5,000 megwatts is achievable by the end of 2016, Mr. Koffie said: “It all depends on how aggressively we execute some of these projects.
There are a lot of things being done to make sure by that time, even if we do not have the 5,000 megawatts, we would be in the process of achieving it soon after that.”
